KRNT) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Kornit Digital Ltd. (NASDAQ: KRNT)

Did you lose money in investments with Kornit Digital If so, please visit Kornit Digital Ltd. Lawsuit for Shareholder Class Action Peter Allocco, (212) 951-2030 or [email protected] To discuss your rights.

NEW YORK (NY) / ACCESSWIRE / Feb 21, 2023 / Bernstein Liebhard LLP is a nationally acclaimed investor right law firm. Investors are reminded of the deadline for filing a lead plaintiff motion to a securities class action lawsuit on behalf of investors who bought or acquired ordinary shares of Kornit Digital Ltd. (“Kornit”) (NASDAQ:KRNT between February 17, 2021 and August 5, 2022, inclusive (the “Class Period”) The suit was filed in the United States District Court for the District of New Jersey. It alleges violations of the Securities Exchange Act of 1984.

Kornit develops and manufactures digital printing technology for the apparel, textile, and garment industries. End-users can print direct-to fabric (“DTF”) or direct-to garment (“DTG”) using the Company’s digital printers. DTG printing allows designs and images to be printed directly on finished textiles, such as apparel and clothing. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly on to swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also manufactures and sells textile dyes and other supplies for its digital printers. Kornit offers customer support contracts that provide technical support and equipment services to its printers.

Kornit continually emphasized the technology’s competitive advantages and assured investors that there was virtually no competition in DTG printing. Kornit also claimed that customers were in high demand for its digital printing products and consumables such as textile dyes. Kornit also provided services to help them maintain their digital printers and manage their customer workflows. Kornit assured investors that it would be able to maintain its customer base and attract new customers due to the company’s strong demand. It also said that this would help limit the risks associated a significant portion of its revenues being concentrated with large customers.

Plaintiff asserts that the statements and others made during the Class Period were false. Kornit’s senior executives knew or, at the very least, disregard that the Company’s digital printing business was plagued with severe quality control issues and customer service shortcomings. These problems and deficiencies led Kornit to lose market share to its competitors. This resulted in a decline in revenue for the Company as customers moved to other digital printing companies. Because of these false representations, Kornit ordinary shares were traded at artificially elevated prices during the Class Period.

Investors learned the truth about Kornit on March 28, 2022 when Fanatics (Delta Apparel) and Fanatics, two of Kornit’s most important customers, announced that they had for months collaborated with one Kornit’s principal competitors to develop a new technology for digital printing that directly competes against Kornit’s products and services. Delta Apparel stated that the new technology was already in place in four of its digital printing facilities, and plans to continue expanding. Fanatics and Delta Apparel used this competing technology to reflect the dissatisfaction expressed by Kornit’s major clients with its product quality and customer service. This meant that Kornit would lose revenue from two of the most important customers.

Kornit reported a net loss for its first quarter 2022, even though it had reported revenues exceeding expectations. This compares to a profit in the previous year period of $5.1million. The Company issued revenue guidance for 2022, which was considerably below analysts’ expectations. Kornit said that the Company’s disappointing guidance was due to a slower pace of orders from customers in the electronic commerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors.

The price of Kornit ordinary stock shares fell $18.78, or 33.3% to close at $37.63 per sa on May 11, 2022.

Kornit announced on July 5, 2022 that it would report significant revenue loss for the second quarter in 2022. Kornit forecasted that revenue for the second quarter would be between $56.4 million and $59.4 millions. This is far below the $85 million to $95 million revenue guidance the Company gave less than two months ago, in May 2022. Kornit explained that the revenue missed was due to “a substantially slower pace of direct to-garment (DTG), systems orders in quarter two than our prior expectations.”

This news caused the Kornit ordinary share price to fall $8.10 per share (or 25.7%) to close at $23.46 on July 6, 2022.

You must apply to the Court by no later than April 30, if you want to be the lead plaintiff April 17, 2023. A lead plaintiff is an individual who represents other class members and acts as a mediator in the direction of litigation. You don’t have to be a lead plaintiff in order to participate in any recovery. You can choose not to take any action and you could remain an absent member of the class.

If you are interested in Kornit ordinary shares purchased or acquired, and/or you would like to discuss legal rights and options Kornit Digital Ltd. Contact Kornit Digital Ltd. Peter Allocco Call (212) 951-2030 [email protected].

Bernstein Liebhard LLP, has recovered more than $3.5 billion on behalf of its clients since 1993. Apart from representing investors, the Firm was retained by many of the country’s largest public and private pension funds to monitor and pursue litigation. The Firm’s success in defending hundreds of lawsuits and class actions has earned it a spot on The National Law Journal’s “Plaintiffs’ Hot List” thirteen consecutive times, and a listing in The Legal 500 for ten years.

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Contact Information:

Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]

SOURCE: Bernstein Liebhard LLP